The Worldwide Impact of 1MDB

A bit late on this article, but Michael Peel and Jeevan Vasagar at The Financial TImes write about the ever-growing global fallout and implications of the Malaysian government’s failed 1MDB “sovereign wealth fund”:

It is not just a matter of domestic politics. The impact of the cases is being felt way beyond Malaysia’s borders due to the amount of money allegedly involved and its scope. The parties said to be affected include foreign officials, leading banks and offshore financial centres, with transactions stretching from Kuala Lumpur to the Cayman Islands and from Abu Dhabi to New York.

1MDB has become a test of regulators’ ability, and desire, to penetrate a web of dealings that take full advantage of the privacy and cross-border complexity available in the global financial system. It is also being seen as a measure of how well authorities deal with cases of suspected grand corruption.

Honestly at this point I just wish Malaysia wasn’t only well-known for global calamities. Before, no one I talked to in the States even knew what Malaysia was. Now, when I tell someone I’m from Malaysia the usual response is “oh, isn’t that where that plane disappeared?” (and then the inevitable “do you know where it is?” Yeah, because clearly all Malaysians have been hiding this secret for the last couple years…)